Issue - meetings

This report concerns the award of contracts for the provision Highway Maintenance Services (collectively referred to as “the contracts”) following approval of Cabinet on 7 February 2022 to tender for the provision of these services. The report sets out in detail the aims and objectives of the Redefining Local Services programme, the procurement strategy and contract and service improvements and seeks authority to award the final contracts.

Cabinet RESOLVED:

(1)      To approve the award of the contract “Lot 1” for the provision of Highway Maintenance Services to O’Hara Bros Surfacing Ltd for an initial contract period of seven years, with an option to extend for up to a further three years on an annual basis and to note that the value of the contract is estimated to be circa £4.3m per year, or circa £43m over the 10 year duration of the contract (excluding inflation indexation).

(2)      To approve the award of the contract “Lot 2” for the provision of Highway Maintenance Services to GW Highways Ltd for an initial contract period of Seven years, with an option to extend for up to a further three years on an annual basis and to note that the value of the contract is estimated to be circa £3.5m per year, or circa £35m over the 10 year duration of the contract (excluding inflation indexation).

Councillor Krupa Sheth (Cabinet member for Environment. Infrastructure & Climate Action) introduced a report that sought approval to award contracts for the provision of Highway Maintenance Services (collectively referred to as “the contracts”).

In considering the report, Cabinet noted the outcome of the detailed procurement process which had been undertaken in line with the strategic approach, aims and objectives within the Redefining Local Services (RLS) programme and the approach and associated service improvements focussed around the procurement of two contractors for delivery of the Highways Maintenance works element of the contract split across two areas of the borough.  In terms of the scope of work for each element it was noted that the award of Lot 1 would cover planned schemes and maintenance work in area 1 of the borough along with reactive repairs across the whole borough and occasional planned schemes and maintenance work in area 2.  Lot 2 would cover planned schemes and maintenance work in area 2 of the borough along with occasional reactive repair across the borough and occasional planned schemes and maintenance work in area 1 of the borough.

In noting the rationale behind the procurement approach undertaken, members were supportive of the impact generated through the increased competition in terms of not only the enhanced flexibility but also in relation to the provision of a more resilient and reactive service.  It was, however, noted that the cost in relation to the emergency reactive repair service under the contract would be subject to an increase which, given the current pressure on the reactive maintenance budget, would require careful management in terms of mitigating the impact on funding available for medium priority highway defects.

In welcoming the enhanced flexibility and improvements to the responsive and reactive nature of the service alongside the associated social value commitments to be delivered under the contracts, Cabinet also took the opportunity to thank the outgoing service provider for their efforts and officers for their work in procurement of the contracts.

Having noted the competitive nature of the procurement undertaken and additional resilience the new arrangements had been designed to deliver Cabinet RESOLVED, having also taken account of the exempt information included in Appendix 1 of the report:

(1)       To approve the award of the contract “Lot 1” for the provision of Highway Maintenance Services to O’Hara Bros Surfacing Ltd for an initial contract period of seven years, with an option to extend for up to a further three years on an annual basis and to note that the value of the contract is estimated to be circa £4.3m per year, or circa £43m over the 10 year duration of the contract (excluding inflation indexation).

(2)       To approve the award of the contract “Lot 2” for the provision of Highway Maintenance Services to GW Highways Ltd for an initial contract period of Seven years, with an option to extend for up to a further three years on an annual basis and to note that the value of the contract is estimated to  ...  view the full minutes text for item 10